How to contract with the U.S. government.

Each year, the federal government contracts with thousands of CPAs to perform financial audits, assist in internal control review work, provide financial management services and develop performance measurement techniques, among other assignments. These engagements can provide a CPA firm with a reliable and often longterm client.

Even more opportunities for CPAs to work with the government should emerge in the future. Federal agencies, which constantly face downsizing and budget cuts, are being encouraged by Vice-President Al Gore's National Performance and Review Program to contract out functions that are not "inherently" governmental. Thus, CPA firms are likely to see more administrative, financial management and accounting engagements open for bids. This also provides smaller CPA firms with a great opportunity, because all government contracts of $100,000 or less must be set aside for small business.

If your firm wants a piece of the government pie, it first must procure a government contract. You can do this by marketing your services directly to the federal agency you want to work with or to the General Services Administration (GSA), which expedites federal contracts. Here's information on how to do both.

STRAIGHT TO THE SOURCE

The first and best piece of advice is to check the Commerce Business Daily (CBD). The CBD, which is published every business day by the Department of Commerce, lists proposed government procurements, subcontracting leads and foreign business opportunities. Agencies are required to announce all intended procurements of $25,000 or more, and, although these announcements appear in the CBD only once, potential suppliers have at least 30 days to respond. You can subscribe to the CBD by writing to the Superintendent of Documents, Government Printing Office (GPO), Washington, D.C. 20402. Subscriptions for the CBD cost $137.50 for six months and $275 for one year. You also can review current issues at a GSA business service center, a Small Business Administration office, a Commerce Department field office, your public library or online at cbdnet.access.gpo.gov.

Once you've found the right agency or you know which one you would like to work with, you have to let the agency know of your interest in getting contracts and the services you provide. You must contact the agency and ask for a request for proposal (RFP). Agency contacts that supply RFPs are listed in the CBD, although some agencies require that you download the RFP from their Web sites. The RFP outlines the type of contract the agency offers, including scope of work, and provides instructions on how to fill it out. Once you have responded to the RFP, it is a waiting game. Your firm should hear back from the agency within four months of submitting the RFP, whether or not you have received the contract.

LET THE GSA DO THE WORK FOR YOU

If you have limited or no prior experience, the GSA may be your best bet for obtaining a federal contract. Each of the GSA's 12 business service centers (also known as small business centers) is staffed with specialists who can identify which GSA offices are in the market for your services. They will explain federal contracting terminology and policy, help you get on bidder lists and brief you on other requirements for GSA contracts.

At the business service centers, you can review announcements of upcoming contracts and obtain useful publications and reference materials.

The GSA can be even more of a resource for your firm. Here are some ways you can use its services to get a jump-start on the competition and proactively seek government contracts:

* Attend GSA events. Attend all available GSA networking sessions, procurement conferences and seminars. Host a table at GSA trade fairs to market your services directly to the government. GSA business service centers have details on these events.

* Get on a proposal mailing list. To receive RFPs automatically, you must obtain a solicitation mailing list application (Standard Form 129) from a business service center and send it to the contracting office. If several contracting agencies are potential buyers, submit a copy of your completed application to each office. You must respond, whether positively or negatively, to every solicitation you receive; if you don't respond, you may be dropped from the list.

* Market your services to GSA's purchasing office. Getting on a mailing list does not guarantee business. You must market your services directly to the Federal Supply Service (FSS)--the GSA's purchasing office, which buys auditing and financial management services--to get your firm's name on the FSS's multiple-award schedule for auditing and financial management services.

The schedule provides federal agencies with direct access to a wide range of professional auditing and financial management services to assist with the completion of certain required financial system reviews, management control reviews and other finance-related tasks.

To have your name on the schedule, you must respond to FSS solicitations posted in the CBD during "open season" (when applications are accepted), which occurs approximately every 18 months. If you miss one, keep your eye on the CBD for the next one. In the meantime, you should monitor the CBD for direct postings of contract opportunities. For more information, contact Alexandra Walter by e-mail at alexandrawalter @gsa.gov or visit the FSS Web page at www.pub.fss.gsa.gov/services/sac.html.

* Consult other GSA sources of information. The following GSA publications offer additional contracting information:

Forecast of GSA Contracting Opportunities. This annual publication lists GSA's contracts for the next several years, giving prospective contractors time to develop marketing strategies, compile the necessary information and prepare proposals. Contracting opportunities are listed by region and type of goods or services required. The publication, issued by GSA's Office of Enterprise Development, is available free of charge from any business service center. It also is available online at www.gsa.gov/web/l/ion/con_opp.nsf

GSA Subcontracting Directory. Companies that have GSA contracts for goods or services worth $500,000 or more are required to have subcontracting plans that specify the amount of goods and services to be supplied through subcontracts with smaller businesses. This information is published semiannually in the directory. For a free copy, write or call your local business service center.

Federal Procurement Data System Federal Procurement Report. This publication contains statistics on procurements by the GSA and more than 60 other federal agencies. To be placed on the mailing list for a free copy of the report, write to the Federal Procurement Data Systems Division, U.S. General Services Administration, 7th and D Streets, S.W., Washington, D.C. 20407.

A GREAT JOB TO PURSUE

Seeking a federal contract is well worth the effort, because the government often makes the best client. The agencies generally pay on time, often within 30 to 45 days of the billing date, but, if payments are late, they must pay interest. In addition, federal contracts generally are large and may require the full-time services of your staff for months at a time. Because this is not seasonal work, however, your firm will not experience workload compression.

Most important, federal contracts often result in fascinating work. Your firm could perform financial audits of the Department of Justice or even the National Aeronautics and Space Administration. One of your auditors might even be asked to perform inventory testing on the space shuttle--you never know.

RELATED ARTICLE: IMPORTANT SOURCES

More information on contracting with the federal government may be obtained from the following sources:

GSA's Home Page www.gsa.gov

Office of Enterprise Development www.gsa.gov/OED/

Minority Business Development Agency www.doc.gov/agencies/mbda/index.html

Small Business Administration www.sba.gov

GSA's BUSINESS SERVICE CENTERS (Also referred to as small business centers)

District of Columbia and metropolitan area Maryland and Virginia: Business Service Center Program Support Division 7th & D Streets, S.W. Room 1050 Washington, D.C. 20407 Telephone: [phone] Fax: [phone]

Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont: Business Service Center T.P. O'Neill, Jr., Federal Building 10 Causeway Street, Room 901 Boston, Massachusetts 02222 Telephone: [phone] Fax: [phone]

New Jersey, New York, Puerto Rico and U.S. Virgin Islands: Program Support Division Business Services, Room 18-130 26 Federal Plaza New York, New York 10278 Telephone: [phone] Fax: [phone]

Delaware, Maryland and Virginia (except D.C. metropolitan area), Pennsylvania and West Virginia: Program Services Division Wanamaker Building 100 Penn Squire East, Room 829 Philadelphia, Pennsylvania 19107 Telephone: [phone] Fax: [phone]

Alabama, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina and Tennessee: Office of Enterprise Development 401 West Peachtree Street, Room 2832 Atlanta, Georgia 30365-2550 Telephone: [phone] Fax: 404-33i-1813

Illinois, Indiana, Michigan, Minnesota, Ohio and Wisconsin: Business Service Center 230 South Dearborn Street, Room 3714 Chicago, Illinois 60604 Telephone: [phone] Fax: [phone]

Iowa, Kansas, Missouri and Nebraska: Office of Enterprise Development 1500 East Bannister Road, Room 1161 Kansas City, Missouri 64131 Telephone: [phone] Fax: [phone]

Arkansas, Louisiana, Texas, New Mexico and Oklahoma: Office of Enterprise Development 819 Taylor Street, 9th Floor 7CPP Fort Worth, Texas 76102 Telephone: [phone] Fax: [phone]

Colorado, Montana, Utah, North Dakota, South Dakota and Wyoming: Business Service Center Denver Federal Center Building 41, Room 240 P.O. Box 25006 Denver, Colorado 80225 Telephone: [phone] Fax: [phone]

Arizona, California, Hawaii and Nevada: Office of Enterprise Development 450 Golden Gate Avenue 5th Floor (ADB) San Francisco, California 94102 Telephone: [phone] Fax: [phone]

Satellite Office Office of Enterprise Development 300 North Los Angeles Street, Room 3259 Los Angeles, California 90012 Telephone: [phone] Fax: [phone]

Alaska, Idaho, Oregon and Washington Office of Enterprise Development 400 15th Street, S.W. Auburn, Washington 98001-6599 Telephone: [phone] Fax: [phone]

RELATED ARTICLE: How Agencies Choose a CPA Firm

Federal agencies that need the help of an outside CPA have two choices: They can contract directly with a CPA firm or they can go through the General Services Administration (GSA). If an agency chooses to contract directly, it must adhere to federal procurement requirements for ensuring contracts are awarded fairly, competitively and cost-effectively. It must, therefore, seek competitive bids, standardize and publish requirements, make determinations of fair and reasonable pricing and consider all opportunities for smaller businesses. If the agency, instead, does its contracting through the GSA, the GSA does all the legwork. The agency elects to use a "multiple awards schedule" (also known as a GSA federal supply schedule), which lists individuals and organizations that have applied to be awarded future contracts and have qualified for inclusion in the schedule. Due to staff reductions and limited resources, more and more federal government agencies are choosing to contract through the GSA.

ANNETTE SCHUMACHER BARR, CPA, is a technical manager in the AICPA professional standards and services division. Ms. Schumacher Barr's views, as expressed in this article, do not necessarily reflect the views of the AICPA. Official positions are determined through certain specific committee procedures, due process and deliberation.